- 3i Group returned 269.76% over three years and 410.81% over five years, far ahead of its sector.
- JPMorgan European Growth & Income delivered 81.88% over three years and 118.88% over five years.
- Temple Bar achieved 75.80% over three years and 184.49% over five years, both well above sector averages.
- Fidelity Special Values gained 141.59% over five years compared with 70.91% for its sector.
- Access the full downloadable report which shows the performance and Yodelar ratings for over 300 trusts across different sectors.
Investment trusts were once seen as a specialist part of the investment market, but in recent years they have gained much more attention. Their appeal lies in the potential to deliver strong long-term growth, provide regular income, and offer access to areas of the market that are harder to reach through traditional funds.
By the start of 2025, the UK investment trust sector managed around £267 billion across 317 trusts, according to the Association of Investment Companies (AIC). While still smaller than the unit trust and Open-Ended Investment Company (OEIC) market, many investment trusts have delivered higher returns than their open-ended peers over the medium and long term.
In this report we highlight 10 of the best performing investment trusts. Each has delivered results that placed them among the strongest in their sector over 1, 3 and 5 years, providing insight into where managers have been able to add value across different markets and strategies.
What Are Investment Trusts?
Investment trusts are a type of fund, but they work differently from the more common unit trusts and OEICs. They are set up as companies and listed on the stock exchange, which means investors buy and sell shares in the trust rather than putting money directly in or out of the fund. Because of this, an investment trust has a fixed number of shares, unlike unit trusts which can expand or shrink as investors move money.
Like other funds, investment trusts are grouped into sectors that show what they focus on - for example, Global, UK Equity Income, Infrastructure, Property, or Private Equity. The Association of Investment Companies (AIC) uses these categories to make it easier to compare trusts with similar objectives.
One feature that makes investment trusts different is that they can borrow money to invest more, a process known as gearing. This can boost returns in good times but can also increase losses when markets fall, which means investment trusts can be more volatile than unit trusts.
The way investment trusts are classified also differs from open-ended funds. The Investment Association (IA) applies strict rules about how much of a fund must be invested in a certain area, while the AIC groups trusts more flexibly based on their overall objectives. Some AIC sectors only include a handful of trusts, so comparisons are not always as broad, but they still provide a useful guide to performance.
10 Top Performing Investment Trusts 2025
Investment trusts are attractive to many investors who believe they can outperform other fund types. The table below highlights 10 top-performing investment trusts from a range of AIC sectors. It shows their overall performance over the past 1, 3 and 5 years. Each has consistently outperformed its sector peers and delivered competitive growth and ranked among the best.
Each trust has also been given a Yodelar performance rating, based on its performance relative to sector peers.
Alternative Liquidity Limited
Alternative Liquidity Limited is an investment trust listed in London. Rather than buying new assets, it aims to gradually sell down its existing portfolio and return value to shareholders over time. Its holdings include a mix of investments such as property, infrastructure projects, private companies, and funds that are harder to trade.
The trust has delivered strong results compared with others in its sector. Over the past year it returned 101.82% against a sector average of 30.04%. Over three years the return was 175.52% compared with 37.66%, and over five years it achieved 217.41% versus 81.19% for the sector.
Recent gains have come from the recovery of assets in markets such as Brazil. However, because the portfolio contains investments that are more difficult to sell, results can vary significantly depending on how and when these sales take place.
JPMorgan Emerging Europe, Middle East & Africa Securities
This trust invests in companies across parts of Europe, the Middle East, and Africa, aiming to grow the value of the portfolio and provide income. Its holdings cover a range of industries, including banks, property, raw materials, and consumer goods.
Performance has been strong in the short and medium term but weaker over the longer period. Over one year the trust returned 81.82% compared with a sector average of 27.19%. Over three years it achieved 167.97% versus 50.27%. Over five years, however, it lost -66.05%, while the sector gained 40.09%.
The trust’s recent results have been helped by investing in countries with stronger economic conditions and in sectors that have grown quickly. Returns have also been influenced by currency changes and regional developments.
Performance remains sensitive to political and economic events in the regions where it invests. The Russian invasion of Ukraine, for example, has affected valuations of some holdings and created additional uncertainty.
Tetragon Financial Group Limited Ord
Tetragon Financial Group is an investment trust listed in London and Amsterdam. It invests in a wide mix of assets, including company shares, loans, property, and other specialist investments. It also owns stakes in asset management businesses, which provide another source of income. The trust’s aim is to grow capital while also paying income to shareholders.
Over recent years, performance has been ahead of the sector average. Over one year it returned 78.29% versus 10.25% for the sector. Over three years it achieved 67.48% compared with 11.45%, and over five years it delivered 132.46% against 42.29%.
Results have been supported by holdings such as Equitix, which invests in infrastructure, as well as funds in lending and property. The broad range of assets has helped spread risk, though it also means valuations can move with changes in markets that are not always easy to predict.
As the portfolio includes private and specialist investments, performance can be influenced by how these assets are valued and by overall market conditions. This can lead to greater variation in returns compared with more traditional equity funds.
Golden Prospect Precious Metals Limited Ordinary Shares
Golden Prospect Precious Metals invests mainly in mining companies that produce gold, silver, platinum, and other precious metals. The trust focuses on smaller and medium-sized mining firms, many of which are based in Canada and Australia.
Performance has been mixed depending on the time period. Over the past year the trust returned 71.62% compared with 24.32% for the sector average. Over three years it achieved 81.43% versus 23.11%. However, over five years it recorded a small loss of -0.78%, while the sector delivered 106.40%.
Recent gains have been supported by rising gold prices since 2023 and by strong results from companies such as West African Resources, Emerald Resources, and Calibre Mining. At the same time, performance has been sensitive to global factors including inflation, the strength of the US dollar, and geopolitical events, all of which can affect precious metal prices.
The trust offers exposure to the precious metals sector, but returns can be highly volatile as they are tied closely to movements in commodity prices and the performance of mining companies.
Downing Renewables & Infrastructure Trust Plc Ord
Downing Renewables & Infrastructure Trust invests in energy and infrastructure projects across the UK, Ireland, and Northern Europe. Its portfolio includes hydropower, solar, wind, and electricity grid assets. Most of these are already in operation, although some money is invested in projects still being built, which carry more risk but can offer higher returns.
Performance has been strong compared with others in its sector. Over one year the trust returned 35.51%, while the sector average was -9.92%. Over three years it gained 2.35%, compared with a sector average loss of -35.17%.
Recent results were supported by improvements in its hydropower operations, higher revenues from grid infrastructure, and the sale of a Swedish wind project. The trust is classified as an Article 9 fund under the EU's Sustainable Finance Disclosure Regulation rules (SFDR) meaning it has a clear environmental focus.
Although results have been positive, returns depend on factors such as energy prices, regulation, and weather patterns, all of which can affect the performance of renewable energy projects.
3i Group Plc
3i Group is one of the UK’s largest listed investment companies, managing around £38.7 billion. It mainly invests in established private businesses in Europe and North America, as well as infrastructure projects. The aim is to grow the value of these companies over time and increase dividends paid to shareholders.
The trust has delivered very strong results compared with its peers. Over the past year it returned 30.80% versus a sector average of 6.53%. Over three years it achieved 269.76% compared with 28.63%, and over five years it returned 410.81% against 90.37% for the sector.
Much of this growth has come from its largest investments, including Action (a Dutch discount retailer), Royal Sanders (personal care products), AESSEAL (industrial engineering), Audley Travel, and Cirtec Medical. These businesses have performed well and contributed significantly to the trust’s results.
Although the trust has delivered strong performance, returns depend on how its portfolio companies perform, how markets value private businesses, and wider economic conditions. This means results can be more volatile than traditional equity funds.
Temple Bar Investment Trust
Temple Bar Investment Trust is a UK-listed fund that mainly invests in large UK companies. The goal is to deliver growth in both capital and income over the long term. The portfolio is relatively concentrated, usually holding between 30 and 50 companies, and shareholders receive dividends every quarter.
Performance has been strong compared with its peers. Over the past year the trust returned 30.72% versus 12.48% for the sector average. Over three years it gained 75.80% compared with 32.18%, and over five years it delivered 184.49% against 81.15%.
Holdings include well-known names such as Shell, BP, BT, Aviva, NatWest, and Marks & Spencer. Returns have benefited from exposure to a mix of industries including financial services, energy, and consumer goods.
As with other UK equity funds, performance can be affected by changes in the domestic economy, sector concentration, and wider market conditions.
Manchester & London Investment Trust plc Ord 25P
Manchester & London Investment Trust, founded in 1972, invests mainly in global company shares with a strong focus in recent years on large US technology businesses. The trust also makes limited use of financial instruments to manage risks such as currency and interest rate changes.
Performance has been positive compared with the sector. Over one year it returned 30.00% against a sector average of 12.42%. Over three years it gained 147.37% compared with 37.52%, while over five years it achieved 58.65%, placing it in the upper half of its peer group.
Much of this growth has been driven by its largest holdings, including NVIDIA, Microsoft, and Arista Networks. These companies have performed strongly in recent years and have been central to the trust’s results.
The trust’s heavy exposure to technology stocks has boosted returns but also increases sensitivity to shifts in the sector, meaning performance can fluctuate more sharply than in more broadly diversified funds.
JPMorgan European Growth & Income
JPMorgan European Growth & Income invests in a broad mix of large and mid-sized companies across continental Europe. The trust aims to grow capital over the long term while also providing regular income, paying dividends four times a year. Its holdings span sectors such as healthcare, technology, consumer goods, and industrials.
Performance has been strong compared with the sector. Over one year it returned 28.37% versus 9.56% for the sector average. Over three years it delivered 81.88% compared with 45.62%, and over five years it achieved 118.88% against 55.75%.
Recent results have been supported by well-known European companies including Novartis, SAP, ASML, Roche, Siemens, Nestlé, UniCredit, and Allianz. These businesses have contributed to growth across different parts of the portfolio.
Performance remains linked to the health of European markets, currency movements, and conditions in key sectors such as healthcare and technology, which can all affect future results.
Fidelity Special Values Ordinary
Fidelity Special Values is a UK-listed investment trust with assets of around £1.45 billion. It invests in UK companies that the managers believe are undervalued or have potential that is not yet recognised by the wider market. The portfolio includes a mix of large, medium, and smaller businesses across different sectors.
Performance has been ahead of the sector average. Over one year the trust returned 21.04% compared with 9.58% for the sector. Over three years it gained 58.96% versus 43.76%, and over five years it delivered 141.59% against 70.91%.
Holdings include companies such as Imperial Brands, DCC, NatWest Group, and Aviva. Recent performance has also been supported by a stronger UK stock market in 2025, with easing inflation, expectations of interest rate cuts, and improved company earnings.
As with other UK equity funds, returns depend on the performance of the domestic economy and can be influenced by changes in sentiment towards the UK market as a whole.
Insights on Investment Trust Performance
Investment trusts have become more widely used by UK investors, but they will not be appropriate for every portfolio. As with all investment products, they involve a balance of risks and potential rewards, and outcomes can vary significantly depending on market conditions, the strategies employed, and the use of gearing.
The 10 trusts highlighted in this report have delivered competitive performance relative to their sector averages over the periods analysed. This illustrates the diversity of approaches within the investment trust universe and shows how results can differ across regions, sectors, and strategies. Past performance, however, is not a guide to future returns, and there is no certainty that similar results will be achieved in the future.
Building an effective portfolio requires more than selecting funds that have performed well in the past. It also requires discipline, regular oversight, and diversification to keep investments aligned with long-term goals.
If you would like to understand how your current portfolio is structured, or whether there may be areas where efficiency could be improved, you can arrange a no-obligation call with a qualified financial adviser at MKC Wealth. This discussion will focus on reviewing your existing holdings, identifying potential inefficiencies, and outlining options for maintaining a portfolio that remains aligned with your objectives.
How We Can Add Value
Following Yodelar’s merger with MKC Wealth, clients now have access to portfolios managed on a discretionary basis by MKC Invest, the specialist investment arm of the MKC group. Discretionary management means portfolio changes can be implemented directly by the investment team, without needing prior approval from each client. This can provide an important advantage, as it allows adjustments to be made more quickly than in advisory or more passive approaches.
This flexibility helps portfolios remain aligned to their intended strategy as markets change. Where underperforming funds or duplication are identified, they can be replaced. Where allocations move out of balance, portfolios can be restructured to bring them back in line with the original risk profile.
MKC Invest’s approach combines independent research, active oversight, and diversified asset allocation across global markets. Portfolios are constructed with discipline, but also with the flexibility to adapt as conditions evolve. Each portfolio is designed to reflect individual circumstances, taking into account time horizon, financial objectives, and tolerance for risk. The aim is to ensure portfolios remain suitable and efficient over time.
